Is the Make Money on Paypal scheme illegal (as seenon Oprah)?

Answer 1

Anything that has paypal involved is a scam..........

Answer 2

Scam.

Here's a relatively recent court case as proof.



The Case:

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
Tampa Division
______________________________________________________
)
FEDERAL TRADE COMMISSION, ))
Plaintiff, ))
v. ) Civil No.
)
PAUL K. BOIVIN, also known as )
PAUL BOWEN, PAUL BOEVIEN, )
PAUL BOWVIEN and PAUL BROWN; )
individually and doing business as )
DESTINY 1999, )
DESTINY 2000 and )
DESTINY 2001 ))
Defendant. )
______________________________________________________)
COMPLAINT FOR INJUNCTIVE AND OTHER EQUITABLE RELIEF
Plaintiff, the Federal Trade Commission (“FTC” or “Commission”), for its
Complaint alleges as follows:
1. The Commission brings this action under Section 13(b) of the Federal
Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b), to obtain permanent injunctive
relief against the defendant to prevent him from engaging in deceptive acts or practices in
violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and to obtain other equitable
relief, including rescission, restitution, and disgorgement, as is necessary in order to
redress injury to consumers and the public interest resulting from the defendant’s
violations of the FTC Act.
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JURISDICTION AND VENUE
2. Subject matter jurisdiction is conferred upon this Court by 15 U.S.C.
§ 53(b) and 28 U.S.C. §§1331, 1337(a), and 1345.
3. Venue in the United States District Court for the Middle District of Florida
is proper under 15 U.S.C. § 53(b) and 28 U.S.C. §§ 1391(b) and (c).
PLAINTIFF
4. Plaintiff, the Federal Trade Commission, is an independent agency of the
United States Government created by statute. 15 U.S.C. §§ 41 et seq. The Commission
enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), which prohibits deceptive acts
or practices in or affecting commerce. The Commission is authorized to initiate federal
district court proceedings, by its own attorneys, to enjoin violations of the FTC Act and to
secure such other equitable relief as may be appropriate in each case, including redress
and disgorgement. 15 U.S.C. § 53(b).
DEFENDANT
5. Defendant Paul K. Boivin, an individual also known as Paul Bowen, Paul
Boevien, Paul Bowvien, and Paul Brown, also does business as Destiny 1999,
Destiny 2000, and Destiny 2001. Defendant Boivin conducts business from his residence
located at 1105 Amble Lane, Clearwater, Florida. At all times material to this complaint,
acting alone or in concert with others, defendant Boivin has formulated, directed,
controlled, or participated in the acts or practices set forth in this complaint. Defendant
Boivin resides and transacts or has transacted business in the Middle District of Florida.
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COMMERCE
6. At all times relevant to this complaint, the defendant has maintained a
substantial course of trade in or affecting commerce, as “commerce” is defined in Section
4 of the FTC Act, 15 U.S.C. § 44.
DEFENDANT’S BUSINESS PRACTICES
7. Since at least September 2000, the defendant has promoted a “get rich
quick” scheme through the use of unsolicited commercial email (“UCE” or “spam”) sent
in bulk to numerous consumers throughout the country, and through the placement of
advertisements in Internet newsgroups. The content and form of both the defendant’s
email messages and Internet ads are virtually identical.
8. The scheme promoted by the defendant instructs a new recruit to mail a
five dollar bill to four or five participants whose names and addresses appear in a
numbered list in the message. Upon receipt of the cash payment, the participants email to
the new recruit one of four or five different “reports” on how to engage in the scheme,
i.e., how to send bulk spam and advertise for “free” on the Internet. In the email message
or Internet ad, the new recruit who wants to participate in the scheme is instructed to enter
his or her own name and address into position one on the list of participants, move every
other participant’s name one entry level down on the list, and remove the participant that
is in the last position on the list. After this revision is complete, and the new recruit
receives each of the four or five reports from the other participants, he or she is instructed
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to forward the revised message to thousands of new names, using his or her own bulk
spam or Internet ads.
9. In his UCE and Internet ads touting this scheme, the defendant has
represented, expressly or by implication, that participants will receive substantial income
by participating in the program, including, but not limited to, the following
representations:
A. “You can earn $46,000 or more in the next 90 days sending e-mail.
Seem impossible? Read on for details (no, there is no “catch”).”
B. “If you would like to make $46,000 in less than 90 days, please
read the following program. . . THEN READ IT AGAIN!!!”
C. “This method of raising capital REALLY WORKS 100% EVERY
TIME. I am sure that you could use up to $46,000 or more in the
next 90 days.”
10. In reality, the vast majority of participants in the program achieve little or
no financial success, or make very modest earnings.
11. The defendant promotes what is commonly known as a “chain letter” or
pyramid scheme that necessarily enriches only a few initial participants at the expense of
the majority of other participants. In a chain letter, each participant pays money to other
participants preceding them in the chain, in exchange for the right to recruit new
participants. Participants then receive benefits for each individual they recruit or who
appears below them in the chain. Earnings in a chain letter scheme are derived primarily
from recruiting other participants into the program, not from the bona fide sale of
products or services to retail customers.
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12. The structure of a chain letter places severe limitations upon the success of
its participants. Participants can only make money if they recruit a substantial number of
newer participants in levels below them. Eventually, chain letter schemes break down
due to exhaustion of the pool of possible recruits. Those at the bottom of the chain, the
majority of participants, lose money because there is no one left to recruit into positions
below them in the chain.
13. In his UCE and Internet ads, the defendant also has represented, expressly
or by implication, that the program is legal. For example, the defendant’s message
includes the following representations:
A. “THIS IS A LEGITIMATE, LEGAL, MONEY MAKING
OPPORTUNITY.”
B. “Due to the popularity of this letter on the Internet, a major nightly
news program recently devoted an entire show to the investigation
of the program described below. . . Their findings proved once and
for all that there are absolutely no laws prohibiting the participation
in this program.”
C. “I checked with the U.S. Post Office (1-800-725-2161 24-hrs.) and
confirmed that [this program] is indeed legal! After determining
that the program was LEGAL and not a CHAIN LETTER, I
decided, “WHY NOT!””
14. In fact, this program is a chain letter scheme that is illegal under a variety
of federal statutes, including the FTC Act, 15 U.S.C. § 45, the Mail Fraud Statute,
18 U.S.C. § 1341, and the Lottery Statutes, 18 U.S.C. §§ 1301-02.
6
15. The defendant has continued to promote this program through spam and
Internet ads even after receiving a warning letter from the FTC in or around September
2000, explicitly advising the defendant that the program was, in fact, illegal.
16. Through the sending of bulk spam and the posting of Internet
advertisements, the defendant has solicited consumers nationwide, including consumers
who reside in this district.
VIOLATIONS OF THE FTC ACT
17. Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits unfair or
deceptive acts or practices in or affecting commerce.
COUNT ONE
18. In numerous instances, the defendant represents, expressly or by
implication, that consumers who participate in the chain letter program are likely to
receive substantial income.
19. In truth and in fact, in numerous instances, consumers who participate in
the chain letter program are not likely to receive substantial income.
20. Therefore, the representation set forth in paragraph 18 is false and
misleading and constitutes a deceptive act or practice in violation of Section 5(a) of the
FTC Act, 15 U.S.C. § 45(a).
COUNT TWO
21. As alleged in paragraphs 7 through 12, the program promoted by the
defendant is characterized by the payment of money by a new recruit to other participants
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in the program, in return for which the recruit obtains the right to receive income for
recruiting others into the program.
22. This type of scheme, often referred to as a chain letter, is a deceptive act or
practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a).
COUNT THREE
23. In numerous instances, the defendant represents, expressly or by
implication, that the program is legal.
24. In truth and in fact, the program is not legal.
25. Therefore, the representation set forth in paragraph 23 is false and
misleading and constitutes a deceptive act or practice in violation of Section 5(a) of the
FTC Act, 15 U.S.C. § 45(a).
COUNT FOUR
26. The defendant provides participants in the program with copies of the
chain letter to be used in recruiting new participants. As described in Counts One, Two
and Three above, that chain letter contains false and misleading representations.
27. By providing participants with the chain letter, the defendant has provided
the means and instrumentalities for the commission of deceptive acts and practices.
28. Therefore, the defendant’s practices, as described in paragraph 26,
constitute deceptive acts and practices in violation of Section 5(a) of the FTC Act,
15 U.S.C. § 45(a).
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CONSUMER INJURY
29. Defendant’s violations of Section 5 of the FTC Act, 15 U.S.C. § 45(a), as
set forth above, have caused and continue to cause substantial injury to consumers.
Absent injunctive relief by this Court, the defendant is likely to continue to injure
consumers and harm the public interest.
THIS COURT’S POWER TO GRANT RELIEF
30. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to
grant injunctive and other ancillary relief, including consumer redress, disgorgement and
restitution, to prevent and remedy any violations of any provision of law enforced by the
Federal Trade Commission.
PRAYER FOR RELIEF
WHEREFORE, plaintiff, the Federal Trade Commission, requests that this Court,
as authorized by Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), and pursuant to its own
equitable powers:
1. Permanently enjoin the defendant from violating Section 5(a) of the FTC
Act, 15 U.S.C. § 45(a), as alleged in this complaint;
2. Award other equitable relief, including rescission of contracts, the refund
of monies paid, and the disgorgement of ill-gotten monies, as is necessary in order to
redress injury to consumers and the public interest resulting from defendant’s violations
of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a); and
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3. Award the Commission the costs of bringing this action, as well as any
other equitable relief that the Court may determine to be just and proper.
Date: January 14, 2002
Respectfully submitted,
William E. Kovacic
General Counsel
_______________________
David M. Torok
Attorney for Plaintiff Federal Trade Commission
600 Pennsylvania Avenue, N.W., Room H-238
Washington, D.C. 20580
Telephone: [phone]
Facsimile: 202-326-3395
Email: [e-mail]



The Judgement:

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
Tampa Division
______________________________________________________
)
FEDERAL TRADE COMMISSION, ))
Plaintiff, ))
v. ) Civil No.
)
PAUL K. BOIVIN, also known as )
PAUL BOWEN, PAUL BOEVIEN, )
PAUL BOWVIEN and PAUL BROWN; )
individually and doing business as )
DESTINY 1999, )
DESTINY 2000 and )
DESTINY 2001 ))
Defendant. )
______________________________________________________)
STIPULATED FINAL JUDGMENT AND ORDER
FOR A PERMANENT INJUNCTION
Plaintiff, Federal Trade Commission (“Commission”), has filed a Complaint for
permanent injunction and other relief in this matter pursuant to Section 13(b) of the
Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 53(b), charging defendant Paul
K. Boivin with violations of Section 5 of the FTC Act, 15 U.S.C. § 45(a). The parties,
represented by the attorneys whose names appear hereafter, have agreed to entry of this
Stipulated Final Judgment and Order for Permanent Injunction (“Order”) by this Court to
resolve all matters in dispute in this action without trial. Pursuant to agreement and
stipulation, IT IS HEREBY ORDERED, ADJUDGED AND AGREED as follows:
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FINDINGS
1. This Court has jurisdiction over the subject matter of this case and over the
defendant;
2. The Complaint states claims upon which relief may be granted against the
defendant under Sections 5(a) of the FTC Act, as amended, 15 U.S.C. §§ 45(a);
3. Venue in this district is proper under 28 U.S.C. §§ 1391(b) and (c) and
15 U.S.C. § 53(b);
4. The acts and practices of the defendant were or are in or affecting commerce, as
“commerce” is defined in Section 4 of the FTC Act, 15 U.S.C. § 44;
5. Defendant waives any claim he may have under the Equal Access to Justice Act,
28 U.S.C. § 2412, amended by PL 104-121, 110 Stat. 847, 863-64 (1996),
concerning the prosecution of this action to the date of this Order;
6. Defendant waives all rights to seek judicial review or otherwise challenge or
contest the validity of this Order, and further waives and releases any claim he
may have against the FTC and the employees, agents, or representatives of the
FTC; and
7. Entry of this Order is in the public interest.
DEFINITIONS
For the purposes of this Order, the following definitions apply:
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A. “Defendant” means Paul K. Boivin, also known as Paul Bowen, Paul Boevien,
Paul Bowvien and Paul Brown, individually and doing business as Destiny 1999,
Destiny 2000 and Destiny 2001.
B. “Multi-level marketing program” means any marketing program in which
participants pay money to the program promoter in return for which the
participants obtain the right to: (1) recruit additional participants or have
additional participants placed by the promoter or any other person into the
program participant’s downline, tree, cooperative, income center, or other similar
program grouping; (2) sell goods or services; and (3) receive payment or other
compensation, in whole or in part, based upon the sales of those in the
participant’s downline, tree, cooperative, income center or similar program
grouping.
C. “Participating” in a multi-level marketing program or a prohibited marketing
scheme includes, but is not limited to, promoting, marketing, advertising, offering
for sale or selling, or assisting others in the offering for sale or selling the right to
participate in, the program or scheme, as well as acting or serving as an officer,
director, employee, salesperson, agent, shareholder, advisor, consultant,
independent contractor or distributor, or acting as a speaker or spokesperson on
behalf of the program or scheme.
D. “Prohibited marketing program” means any marketing program, Ponzi scheme,
chain marketing scheme, or other marketing plan or program in which a person
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who participates makes a payment and receives the right, license or opportunity to
derive income as a participant primarily from: (i) the recruitment of additional
recruits by the participant, program, promoter or others; or (ii) non-retail sales
made to or by such recruits or their successive generations of recruits.
E. “Retail sales” means sales of goods or services to third-party end-users who are
not participants or recruits in the multi-level marketing program.
ORDER
Conduct Prohibitions
I.
IT IS THEREFORE ORDERED that the defendant, his officers, agents,
servants, employees and those persons in active concert or participation with him who
receive actual notice of this Order by personal service or otherwise, are hereby
permanently restrained and enjoined from participating, in any manner or capacity
whatsoever, directly, in concert with others, or through any business entity or other
device, in any prohibited marketing scheme.
II.
IT IS FURTHER ORDERED that the defendant, his officers, agents, servants,
employees and those persons in active concert or participation with him who receive
actual notice of this Order by personal service or otherwise, while participating in any
multi-level marketing program not subject to Paragraph I, are hereby permanently
restrained and enjoined from making, or assisting in the making of, expressly or by
-5-
implication, directly or indirectly, orally or in writing, any false or misleading statement
or omission of material fact, including but not limited to the following:
A. Misrepresentations about the potential earnings or income derived from such
activity;
B. Misrepresentations about the benefits any person participating in such an activity
actually can receive or reasonably can expect to receive from such activity;
C. Misrepresentations about the amount of sales, incentives, profits or rewards a
person actually made or can potentially make through such activity; and
D. Misrepresentations about the legality of the program.
III.
IT IS FURTHER ORDERED that the defendant, his officers, agents, servants,
employees and those persons in active concert or participation with him who receive
actual notice of this Order by personal service or otherwise, while participating in any
multi-level marketing program not subject to Paragraph I, are hereby permanently
restrained and enjoined from providing to others the means and instrumentalities with
which to make, expressly or by implication, directly or indirectly, orally or in writing, any
false or misleading statement.
IV.
IT IS FURTHER ORDERED that the defendant, his officers, agents, servants,
employees and those persons in active concert or participation with him who receive
actual notice of this Order by personal service or otherwise, are hereby permanently
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restrained and enjoined from selling, renting, leasing, transferring or otherwise disclosing
the name, address, telephone number, credit card number, bank account number, e-mail
address or other identifying information of any person who paid any money to the
defendant in connection with any prohibited marketing program. Provided, however, that
the defendant may disclose such identifying information to a law enforcement agency or
as required by any law, regulation or court order.
V.
IT IS FURTHER ORDERED that the defendant shall, from the date of his
signing of this Order and continuing into the future, refund by mail, within fifteen (15)
days of receipt, any payments made to him by any person or entity as part of the chain
letter program described in the FTC’s Complaint in this matter, and shall include with the
mailed refund a copy of the notification letter that is attached to this Order as
Appendix A.
Compliance Reporting
VI.
IT IS FURTHER ORDERED that, to assist the Commission in monitoring
compliance with the provisions of this Order:
A. For a period of three (3) years from the date of entry of this Order, the defendant
shall notify the Commission of any changes in the defendant’s residence, mailing
addresses and telephone numbers, within ten (10) days of the date of such change;
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B. One hundred eighty (180) days after the date of entry of this Order, the defendant
shall provide a written report to the FTC, sworn to under penalty of perjury,
setting forth in detail the following:
1. The defendant’s then current residence address and telephone number;
2. A statement describing the manner in which the defendant has complied
and is complying with the Order; and
3. A list of the names and addresses of all individuals or entities to which the
defendant has sent a refund and notification letter, pursuant to Paragraph V
of this Order;
C. Upon written request by a representative of the Commission, the defendant shall
submit additional written reports (under oath, if requested) and produce
documents on fifteen (15) days’ notice with respect to any conduct subject to this
Order; and
D. For purposes of the compliance reporting required by this Paragraph, the
Commission is authorized to communicate directly with the defendant.
Compliance Monitoring
VII.
IT IS FURTHER ORDERED that the Commission is authorized to monitor the
defendant’s compliance with this Order by all lawful means, including but not limited to
the following means:
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A. The Commission is authorized, without further leave of court, to obtain discovery
from any person in the manner provided by Federal Rules of Civil Procedure 26-
34, 36 and 37, and to use compulsory process pursuant to Federal Rule of Civil
Procedure 45, for the purpose of monitoring and investigating the defendant’s
compliance with any provision of this Order; and
B. Nothing in this Order shall limit the Commission’s lawful use of compulsory
process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1, to
investigate whether the defendant has violated any provision of this Order or
Section 5 of the FTC Act, 15 U.S.C. § 45.
Record Keeping Provisions
VIII.
IT IS FURTHER ORDERED that, for a period of three (3) years from the date
of entry of this Order, the defendant, his officers, agents, servants, employees and those
persons in active concert or participation with him who receive actual notice of this Order
by personal service or otherwise, are hereby permanently restrained and enjoined from
failing to create and retain a record of the names and addresses of all individuals or
entities to which the defendant has sent a refund and notification letter, pursuant to
Paragraph V of this Order.
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Acknowledgment of Receipt of Order
IX.
IT IS FURTHER ORDERED that, within five (5) days of receipt by the
defendant of this Order as entered by the Court, the defendant shall submit to the
Commission a truthful sworn statement, in the form shown in Appendix B to this Order,
that shall acknowledge receipt of this Order.
Notification
X.
IT IS FURTHER ORDERED that, for the purpose of this Order, all
correspondence, notifications, or reports that the defendant is required to provide to the
Commission shall reference the case name and number of this matter and shall be sent to
the following address, or at such future address as the Commission may designate in
writing to the defendant:
Associate Director for Marketing Practices
Federal Trade Commission
600 Pennsylvania Avenue, NW
Washington, DC 20580
Retention of Jurisdiction and Entry of Judgment
XI.
IT IS FURTHER ORDERED that this Court shall retain jurisdiction of this
matter for all purposes.
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There being no just cause for delay, this Stipulated Final Judgment and Order for
a Permanent Injunction as to defendant Paul K. Boivin is hereby entered this ___ day of
________, 2001.
___________________________
United States District Judge
The parties hereby consent to the terms and conditions of the Final Order as set
forth above and consent to entry thereof.
FOR THE COMMISSION: FOR THE DEFENDANT:
___________________________ _________________________________
DAVID M. TOROK, ESQ. PAUL K. BOIVIN, individually and
Federal Trade Commission doing business as Destiny 1999,
600 Pennsylvania Ave., N.W. Destiny 2000 and Destiny 2001
Room 238
Washington, D.C. 20580
[phone]
[phone] (Fax)
Email: [e-mail]
Appendix A
Sample Notification Letter Required by Paragraph V
Paul K. Boivin
1105 Amble Lane
Clearwater, Florida 33755
[Insert current date]
Dear [insert name of new recruit]:
I recently received a five dollar payment from you in response to either an email
sent to you, or to an advertisement posted on the Internet, which contained my name as a
participant. You should be aware that, contrary to the false statements made in that
message, the advertised program is, in fact, a chain mail scheme that is illegal.
Participation in the program can result in legal action being taken against you. As a
result, I am returning your five dollar payment. I ask that you pass this message on to
anyone else you know of that is participating, or thinking about participating, in this
program.
I am sending you this letter as a result of a lawsuit filed by the United States
Federal Trade Commission (“FTC”) against me and other participants in this chain mail
program. A copy of the press release issued by the FTC, announcing the law enforcement
action, is enclosed. As you can see from the announcement, the FTC is serious about
bringing an end to this and all other chain mail programs. They may bring additional
actions against others who continue to participate in this program. You should cease any
further participation.
Please feel free to copy and distribute this letter at will.
Sincerely,
Paul K. Boivin
Enclosure (FTC Press Release)
Appendix B
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
Tampa Division
______________________________________________________
)
FEDERAL TRADE COMMISSION, ))
Plaintiff, ))
v. ) Civil No.
)
PAUL K. BOIVIN, also known as )
PAUL BOWEN, PAUL BOEVIEN, )
PAUL BOWVIEN and PAUL BROWN; )
individually and doing business as )
DESTINY 1999, )
DESTINY 2000 and )
DESTINY 2001 ))
Defendant. )
______________________________________________________)
AFFIDAVIT OF PAUL K. BOIVIN
I, Paul K. Boivin, being duly sworn, hereby state and affirm as follows:
1. My name is Paul K. Boivin. My current residence address is 1105 Amble
Lane, Clearwater, Florida 33755. I am a citizen of the United States and am over the age
of eighteen. I have personal knowledge of the facts set forth in this Affidavit.
2. I am a defendant in FTC v. Paul K. Boivin, Case No. ______________
(United States District Court for the Middle District of Florida, Tampa Division).
3. On ___________ [date], I received a copy of the Stipulated Final
Judgment and Final Order For Permanent Injunction, which was signed by the Honorable
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________________ [name of judge] and entered by the Court on ___________ [date of
entry of Final Order]. A true and correct copy of the Final Order I received is appended
to this Affidavit.
I declare under penalty of perjury under the laws of the United States that the
foregoing is true and correct. Executed on ___________ [date], at _________________
[city and state].
______________________________
Paul K. Boivin
Subscribed and sworn to before me this _____ day of _________, 2001.
______________________________
Notary Public
My Commission Expires:
______________________________